prophetic Stalin quote.
Keynes was wrong about the inverse relationship between inflation and unemployment.We saw this during the stagflation during the 70's here in the united states. Which even so, we did see a resurgence of Keynesian economic thought during the Obama years.
The federal reserve had several rounds of quantitative easing after the crash of 2008, to try and increase aggregate demand to try and deal with the unemployment and underemployment that the crash caused.
Which Keynes was a fool, his goal of having full employment is impossible as long as a market economy is our reality.
The cheap price of labor is dependent upon the reserve army of labor, as Marx so eloquently put it. So unemployment serves a function is a capitalist economy,meaning that full employment would have drastic consequences in the labor sector and productive sector by increasing the price of labor, which would increase the price of good or cause,"cost push inflation".
Keynes tried to solve one of the inherit contradiction of capitalism, but you can't fix capitalism at all. Reform will always have reaction.
Which is what we are seeing with the domination of Milton Friedmans neo-liberalisms. The dominate economic policy is,"oh, the market will figure it out for us". Which the irony of all this is that neo-liberalism essentially caused the crash in 2008 to begin with. The housing market was left alone and what did we get?
The whole capitalist system is absurd in and of itself.